As rules tighten on plastics, chemicals and traceability, a once-alternative fibre is becoming mainstream.
Lyocell has long been marketed as a greener substitute in textiles. Today it is edging closer to a default option. Regulatory pressure—from extended producer responsibility schemes to the EU’s forthcoming rules on textile waste, chemicals, and digital product passports—has sharply raised the bar for materials. Brands now need fibres that are traceable, low-impact and demonstrably biodegradable. Lyocell fits that brief.
Unlike many regenerated fibres, lyocell is produced using N-Methylmorpholine-N-oxide (NMMO) in a closed-loop process that recovers more than 99% of the solvent. Its feedstock is wood pulp from managed plantations, not petrochemicals. Certified to biodegrade in marine, soil, freshwater, and composting environments, it directly addresses two mounting liabilities for the fashion industry: carbon emissions and plastic pollution.
That regulatory logic is reshaping the market. Global lyocell capacity will exceed 1.3 million tonnes in 2025, marking a shift from slow adoption to industrial scale. Sateri, part of Royal Golden Eagle, is betting that this growth is structural, not cyclical. The company launched “The Lyocell Company” branding in 2025 and is targeting an annual capacity of 400,000 tonnes across multiple Chinese sites, backed by pulp supply from Brazil and Indonesia.
Lyocell’s appeal is not purely environmental. It blends easily with cotton, polyester, and wool, works across spinning systems and offers predictable performance. In apparel, it delivers breathability, moisture management and a smooth hand; in nonwovens, it combines strength with absorbency for hygienic uses.
What was once a “green premium” fibre is increasingly a compliance tool. As regulation hardens, lyocell’s value proposition is shifting from virtue to necessity.
